The Balanced Scorecard

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The Balanced Scorecard - Managing for
Performance Improvement John Tatam
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Demography

• 164,000 Population
• Large proportion of elderly children
• Relatively stable homogeneous - but changing
• High levels of deprivation poor basic skills

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Our Past - Traditional

• Generally solid services
• Financially sound
• But weak on systems
• Now radically modernising

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Our Past - Performance Management
Collected PIs - c. 150 statutory - over 300
local But, didnt use Didnt know if
measuring the right things
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The Balanced Scorecard
Translates strategy into measurable objectives
Spread across 4 quadrants - Finance - Custo
mers - Systems - Organisational Capacity
Widely used in private sector
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Adapting The Balanced Scorecard

• Developed for the Private Sector
• - bottom line at the top
• For local government
• - Finance less critical
• - Community Perspective (well being) as
  well as customers

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Community Priorities

• Promoting equal opportunities and celebrating
  diversity
• Better education and learning for all
• Developing rights and responsibilities with
  the local
• community
• Improving Health, Housing and Social Care
• Making Barking Dagenham cleaner, greener and
  safer
• Raising general pride in the Borough
• Regenerating the local economy

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Developing the Scorecard

• What are we trying to achieve? (Community
  Priorities)
• What key things do we need to get right to
  achieve them? (Strategic Objectives)
• How do we know if we are getting there?
  (Measures and Targets)

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The Barking and Dagenham Balanced Scorecard
Strategy Map
Raising Pride
Developing Rights Responsibilities
Improving Health, Housing, Social Care
Cleaner, Greener, Safer
Promoting Equal Opps, Celebrating Diversity
Regenerating Local Economy
Better Education Learning for all
Community First
Meeting Customer Needs First
Providing Accessible, Local Services
Improving Standards
Investment through Partnerships
Allocating resources to support priorities
Every Pound Counts
Community Leadership Role
Funding the Future- Financial Resource
Perspective
Customer First
Empowering Decisions, Informing Choice
Performance Accountability
Redesign Processes Programmes to put
Customers First
Excellence through Partnerships
Integrated Financial Service Planning
Performance Counts - Organisational Processes
Perspective
People Matter - Learning Growth Perspective
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The Council Scorecard Performance Indicators

• of interactions with the public that are
  delivered electronically e.g. by telephone,
  internet.
• of staff who are set performance targets as a
  result of appraisal/appointment
• of reports to members that are appropriate of
  good quality
• of Balanced Scorecard actions implemented on
  time and as planned
• of partnership strategies/action plans
  delivered on time as planned

Performance Counts
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Choosing Measures

Measurement is the language which gives
clarity to vague concepts R. Kaplan
Measures define success for an organisation
Andy Neely
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Regenerating the local economy

• Definition
• Creating more wealth for local people.
• Helping local people with the skills and training
  to get good quality jobs.
• Enterprise and investment in the Borough.
• Measure
• Average income of Barking and Dagenham citizens.

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Providing accessible, local services

• Definition
• Extending service availability and providing easy
  access for all sectors of the community.
• Measure
• of access indicators in top quartile

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Allocating resources to support priorities

• Definition
• Targeting financial, HR and other resources on
  corporate priorities. Providing and achieving
  the required outputs.
• Measure
• of overall budget which is re-directed to
  priorities.

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Providing strategic leadership

• Definition
• All managers will lead and act strategically.
• We will ensure expertise and best practice
  learning are maximised by developing staff inside
  and outside the organisation.
• Staff will be able to see clearly how their day
  to day actions contribute to the overall success
  of the organisation.
• Measure
• of staff who are satisfied the leadership of
  their manager enables them to place their work in
  the context of the Community Priorities and/or
  strategic objectives

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Performance and accountability

• Definition
• All levels of the organisation will achieve their
  agreed performance targets.
• Measure
• of staff who are set performance targets as a
  result of appraisal/appointment.

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Service Scorecards
Each of the 29 Service Heads produce a
scorecard. This both translates the corporate
scorecard at service level and takes account of
specific service pressures e.g. from government
departments.
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Scorecard Packs
Each Head of Service produces

• Service Strategy (or strategies)
• - what are they trying to achieve
• A Scorecard of strategic objectives and
  measures
• An implementation plan of how they will deliver
  the
• Scorecard

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At the Heart of What We Do
Ensuring the Scorecard drives the management of
the Council - BVPP - Response to
CPA - PSA - Personal Performance Management Is it
in your scorecard?
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J
BAD
It is not a statutory requirement to collect this
indicator from 01/02, but it will continue to be
monitored locally.
GOOD
No comparative data for 97/98 and 98/99
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J
GOOD
BAD
No comparative data available for 97/98
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l
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• Improvement/Deterioration
• Performance on this indicator is poor.
• 3 Adoption orders have been finalised during the
  year.
• Activity in placing children has been good.
• 18 children have been placed for adoption during
  the year.
• In all cases the preparatory work and reports
  required from the Authority are complete.
• Serious delays in appointing Guardian ad Litams
  and in the court system prevent our improvement.
• Action Taken / Update since last QTR
• We have thoroughly analysed performance in this
  indicator.
• We have approached the courts and the Children
  Families Court Advisory Service (CAFCASS), which
  is responsible for the appointment of Guardians
  in court cases, and the Department of Health to
  seek their engagement in resolving delays.
• The Leader of the Council has also written to
  CAFCASS.
• Further Action
• Awaiting opportunity to engage in action planning
  with the courts and CAFCASS.
• Corporate Impact
• N/A
• Additional Information
• We are currently in the 1 blob banding.

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The Impact

• The scorecards link community priorities to
  strategic objectives and individual performance.
• Staff can see their place in the bigger
  picture.
• Genuine enthusiasm for the Balanced Scorecard.
• A real focus on performance management.
• Elected Councillors can focus on strategy.
• Services are improving!

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The Lessons

• Leadership and Consistency
• Keep up the energy
• Focus on improvement, not the system
• Keep it simple - but not simplistic
• Keep restating the basics

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Improving Performance

• Four tests of Performance Management
• Does it focus on what is important for this
• organisation/service?
• Do the measures define what success means for
  us?
• Do we know if we are making progress?
• Do we act on the information?

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Performance Breakthroughs
The strengths in this Authoritys approach are
that they set out for a simple approach and have
put effort into keeping it simple. They have
worked out how to make the system work for them
and they have encouraged local ownership They
recognised that the discussion people had about
services during the delivery process were as
important as the framework itself
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Want to know more?

• Web site www.lbbd.gov.uk
• (Under About the Council or Search on
  balanced
• scorecard)
• Contacts
• john.tatam_at_lbbd.gov.uk
• sandra.hamberger_at_lbbd.gov.uk

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The Balanced Scorecard - Managing
for Performance Improvement John Tatam